Firstbuy mortgages

TIMMY · 26th March 2012, 04:19 PM

I've had enough of renting and really want to get my own place and this looks like it's going to be my best/only option.

Ideally i'd save up a nice deposit myself and buy a property outright but that isn;t going to happen while renting so this 5 year, interest free equity loan seems like a good idea but i'm no expert.

Has anyone on here gone down this route? Any advice more than welcome as this is all new to me.

Jasper · 26th March 2012, 04:38 PM

My opinion for what its worth mate is don't bother, the arse will fall out of a market that is being propped up by artificially low interest rates. Sit tight.

Harry Angstrom · 26th March 2012, 04:42 PM

Quote:

Originally Posted by TIMMY

I've had enough of renting and really want to get my own place and this looks like it's going to be my best/only option.

Ideally i'd save up a nice deposit myself and buy a property outright but that isn;t going to happen while renting so this 5 year, interest free equity loan seems like a good idea but i'm no expert.

Has anyone on here gone down this route? Any advice more than welcome as this is all new to me.

The problem with this (and any scheme that alters the market) will be when you sell.

The price of the new house will be inflated because more people can buy them BUT when you come to move on, no first time buyer will look at it if they can get a subsidy for a new house.

i think they will be VERY DIFFICULT to sell.

Stevie Freestein II · 26th March 2012, 05:27 PM

Quote:

Originally Posted by Jasper

My opinion for what its worth mate is don't bother, the arse will fall out of a market that is being propped up by artificially low interest rates. Sit tight.

How long for though?

People were saying the same in 2001 , 2004 and 2008 IIRC and prices haven't fell much at any time.

TIMMY · 26th March 2012, 05:27 PM

Thanks for the replies.

The more i read about it the less appealing it becomes. I'm just looking at all the options available and will be sitting down with a financial advisor before any decisions are made.

I was originally looking at the newbuy scheme because you don't need a 20% loan but will struggle to afford anything around here on my own.

I'm currently sharing a flat with my brother which is £850 a month but he wants to move back in with the parents when the lease is up at the end of May so he can get his finances sorted.

Looks like i might have to join him

The · 26th March 2012, 06:40 PM

im interested in these aswell, i could basically do with a 0% interest loan for about 6k which would allow me to get an 85% LTV mortgage, can you do this with newbuy?

Jasper · 26th March 2012, 07:11 PM

Quote:

Originally Posted by Stevie Freestein II

How long for though?

People were saying the same in 2001 , 2004 and 2008 IIRC and prices haven't fell much at any time.

As soon as rates go up Stevie lad. The market will be (comparatively) flooded with properties that folk are desperate to sell as their mortgages go up.